US shares pause on budget worries July 20, 2011 US stocks closed near unchanged yesterday, a day after Wall Street’s best rally since March, as the oncoming debt ceiling deadline overshadowed strong earnings from Apple. Apple hit another all-time high one day after the maker of the iPhone and iPad reported quarterly revenues that far exceeded expectations. The stock jumped 2.7 per cent to [...]
The market philosophy of Italy’s go-to fund manager July 20, 2011 FOR someone who runs a multi-million euro international investment group, Robert Tomei is a laid-back and affable man to sit down and talk to in the Connaught Hotel bar. Tomei’s Milan based international investment company has over €1bn of assets under management. As the group chairman, Tomei is responsible for the approval of every group [...]
Companies face forex risk on euro July 20, 2011 THE UK has a long history of having an outward looking economy and an ever-increasing number of companies are looking to garner profits abroad. But added to the regulatory and logistical problems of trading overseas, changes to the value of currencies can warp balance sheets. The volatility of the ongoing Eurozone crisis could present a [...]
Banks’ bounce aids uptick in the FTSE July 19, 2011 A rally by recently beaten-down banks and commodity issues hauled Britain’s top share index higher yesterday, although many traders doubted whether the gains could hold. “Dead cats are proving pretty elastic … It is most likely that any hedge funds shorting stocks over the [banks] stress tests are back in and buying to cover their [...]
Strong results bolster Wall Street stocks July 19, 2011 WALL Street rebounded yesterday, bolstered by strong corporate results and renewed hope for an agreement in Washington that would avert a default on US debt. The Dow Jones industrial average was up 210.10 points, or 1.70 per cent, at 12,595.26. The Standard & Poor’s 500 Index was up 21.38 points, or 1.64 per cent, at [...]
The cloud of debt that is hanging over the US July 19, 2011 WHILE the European debt crisis rumbles on, there is also a storm brewing across the Atlantic. As European finance ministers squabble, the GOP and Democrats are locked in a battle of their own. This row has fuelled uncertainty from investors as to America’s ability to address its enormous debt burden. But if they are to [...]
SWISS FRANC IS PROVIDING RISK RELIEF July 19, 2011 CREDIT concerns continue to preoccupy FX traders, and as officials on both sides of the Atlantic struggle to put forth a credible fiscal policy to appease the markets, the Swiss franc remains the currency of choice for those seeking the safety of sound money. The Swissie has become the pox-on-both-your-houses trade as investors seek to [...]
Eurozone crisis won’t be swept under the peripheral carpet July 19, 2011 THE Eurozone has been on the brink of outright crisis for a while, but events are overtaking politics, as markets lose faith in Europe’s heart. Kathleen Brooks of Forex.com is concerned that the tremors in the periphery are now being felt in the core, noting: “France and Belgium have seen their spreads versus German bonds [...]
THE TIPSTER July 19, 2011 SINCE breaking below the $80 level in spectacular fashion a few days ago, dollar-yen seems to have found some support around ¥79. The break below ¥80 could mean a retest of the post earthquake lows around ¥76.50. Capital Spreads quotes a price of ¥79.00-¥79.01. European government bond yields are hitting lofty heights not seen for [...]
FOREX ANALYST PICKS July 19, 2011 FOREX STRATEGIST JOHN KICKLIGHTER My pick: Short Australian dollar-dollar and euro-dollar, long dollar-yen Expertise: Fundamental analysis with risk management Average time frame of trades: 1 day to 1 week My sterling-dollar short from last week hit its first target; but the remainder of the position was trailed out at break even on a sharp reversal [...]